Maturity

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Related to maturities: Current Maturities

Maturity

For a bond, the date on which the principal is required to be repaid. In an interest rate swap, the date that the swap stops accruing interest.

Maturity

The time when the issuer of a bond or other debt security must repay the principal or when a borrower must repay a loan in full. For example, if a company issues $1 million in bonds with a maturity of 10 years, the company must repay $1 million to bondholders 10 years after the issue. The amount owed at maturity is usually the same as the debt or loan's face value. After maturity, the loan or debt ceases to exist, assuming all parties have fulfilled their obligations. See also: Expiration.

maturity

The date on which payment of a financial obligation is due. In the case of a bond, the maturity date is the one on which the issuer must retire the bond by paying the face value of the bond to its owners. Shares of stock do not have specific maturity dates.
Case Study In late 1995, BellSouth became only the fifth company in 40 years to issue bonds with 100-year maturities. The AAA-rated bonds carried a 7% coupon that was 70 basis points higher than 30-year Treasury bonds yielded when the BellSouth bonds were priced. Because it is impossible to know what the next 100 years will bring, bonds with such long maturities subject investors to substantial risk. Renewed inflation, for example, could undermine the purchasing power of the interest payments a bondholder received. Likewise, competition in the communications industry might shake the financial stability of a company long protected by regulation. In addition, changes in market rates of interest have a significant impact on the price of bonds with long maturities. On the plus side though, this BellSouth bond presented investors with a chance to lock in for a long period what at the time appeared to be an attractive yield. If inflation and interest rates remain low for decades, the bonds could turn out to be a profitable investment.

maturity

The date on which the remaining balance of a promissory note is due.

Maturity

The period until the last payment is due.

The maturity is usually but not always the same as the period used to calculate the mortgage payment. See Term.

References in periodicals archive ?
Of course, when you extend maturities you should bear in mind when the funds will be needed.
The debt exchange positions the company to extend maturities scheduled for 2009 and 2010 to 2015, and extend maturities scheduled for 2011 and 2012 to 2014 and 2015 respectively.
However, Dow is likely to have competing uses for cash in the near term, which include current debt maturities, pension obligations dividends, and share repurchases.
The addition of the cash from the new convertible issuance will enhance the company's flexibility to fund future cash flow needs, 2005 maturities, and make opportunistic acquisitions, as well as continue to address its 2008 maturity level.
NSC's level of free cash flow generation has been significantly stronger than that of some competing railroads, notably CSX, and has given NSC the opportunity to pay some debt maturities with cash as they come due, as it did in the first quarter of this year.
intends to refinance substantially all its existing debt in order to extend its debt maturities, to increase its financial flexibility and to take advantage of current conditions in the debt markets.
Frozen deposits were rescheduled in early 2002 to fixed maturity certificates (CEDROs) with maturities spread over time.
However, to ensure that each series of CCNs has staggered maturities, the scheduled maturity date of the first issued series 1MM CCNs will be April 15, 2004, and the scheduled maturity date of the first issued series 2MM CCNs will be July 15, 2004.
Without any significant debt maturities due until 2006, we can now focus our efforts on running our business through operational initiatives and innovative marketing programs in preparation for the expected economic recovery.